Central Bank of India FD Premature Withdrawal Penalty Calculator

What is the Central Bank of India FD Premature Withdrawal Penalty Calculator?

The Central Bank of India FD Premature Withdrawal Calculator determines your payout based on the FD interest rate applicable for the period the deposit was held, minus the penalty. The Central Bank of India FD Premature Withdrawal may result in lower returns due to reduced interest rates and the applicable penalty charges. Taking into account factors like the deposit amount, original tenure, and the period of actual investment, the calculator gives you an accurate estimate of the payout.

Benefits of Central Bank of India FD Premature Withdrawal Penalty Calculator

Some of the key benefits of the Central Bank of India FD premature withdrawal penalty calculator:

• Quick Estimates: Get instant calculations of your revised FD payouts with the FD Premature Withdrawal Penalty Calculator, without needing to visit a branch.
• Transparency: It shows the amount you will receive after penalty deductions when you withdraw your fixed deposit early from the Central Bank of India.
• Ease of Use: The Central Bank of India tool is simple and user-friendly, letting you enter just a few details to calculate your payout.
• Customised Results: The calculator uses accurate FD interest rates based on your customer type, whether you are a general or senior citizen.

How Does the Central Bank of India FD Premature Withdrawal Penalty Calculator Work? 

The premature withdrawal calculator uses the compound interest formula to calculate the final payout:

The following is the calculation process for both general and senior citizens:

1. For General Citizens

   Let’s say a general citizen invested in a Central Bank of India Fixed Deposit.

   • Investment Amount: ₹1,00,000
   • Original Tenure: 2 years at a booked rate of 7.15%
   • Premature Withdrawal: After 13 months (approx. 395 days)

   On the booking date, Central Bank of India FD rates for 395 days were 6.85% for general citizens.

   Interest Calculation:

   • Applicable Rate for Period Held: 6.85%
   • Penalty Deduction: 1.00%
   • Final Interest Rate: 6.85% – 1.00% = 5.85%

   Outcome: The general citizen earns 5.85% interest for the 13-month holding period instead of the originally booked 7.15% for 2 years.

2. For Senior Citizens

   Now, let’s consider a senior citizen investing in the same FD.

   • Investment Amount: ₹1,00,000
   • Original Tenure: 2 years at a booked rate of 7.65%
   • Premature Withdrawal: After 13 months (approx. 395 days)

   On the booking date, Central Bank of India senior citizen FD rates for 395 days were 7.35%.

   Interest Calculation:

   • Applicable Rate for Period Held: 7.35%
   • Penalty Deduction: 1.00%
   • Final Interest Rate: 7.35% – 1.00% = 6.35%

   Outcome: The senior citizen earns 6.35% interest instead of the originally booked 7.35%, based on the applicable Central Bank of India senior citizen FD rates for the period the deposit was held.

   Note: Senior citizens generally earn 0.50% higher interest than general citizens on most tenures.

Central Bank FD Premature Withdrawal Penalty Charges

The Central Bank of India FD Premature Withdrawal Charges usually involve a 1% penalty on the applicable interest rate for the period the deposit was held. This penalty lowers your final payout. No interest is paid if the withdrawal is made within 7 days of the deposit opening. Tax Saver FDs and Non-callable deposits are not eligible for premature withdrawal, except in special cases such as a court order or if the account holder is deceased. Based on the applicable interest rates, senior citizens are also subject to the same 1% penalty.

Key Takeaways

The Central Bank of India FD Premature Withdrawal Penalty Calculator is a tool to estimate your final payout when closing a fixed deposit before maturity. It shows the revised interest and applies the applicable penalty of 1%. This helps you make informed financial decisions and manage unexpected needs.